American Century Investments, an investment management company, released its first-quarter 2026 investor letter for the "American Century Investments Focused Dynamic Growth Fund". The letter can be downloaded here. U.S. stocks advanced sharply with double-digit quarterly gains largely due to robust earnings, resilient economic data, and momentum in AI-related stocks. However, there was a slight pullback in June as momentum waned and investors anticipated potential interest rate hikes by the Federal Reserve. Growth and AI stocks outperformed value stocks, while large-cap companies generally surpassed small- and mid-cap stocks. Underperformance was noted in healthcare and communication services, while industrials, particularly in aerospace and defense, contributed positively to performance. The fund's investor class returned 16.38%, slightly below the Russell 1000 Growth Index's 16.74%. The investment approach focuses on bottom-up financial ****** ysis to identify large-cap companies with long-term earnings growth potential, while aiming to mitigate non-financial risks. Please review the Fund's top five holdings to gain insights into its key selections for 2026.
In its second-quarter 2026 investor letter, American Century Investments Focused Dynamic Growth Fund highlighted Rocket Lab Corporation (NASDAQ:RKLB) as a notable contributor to performance. Rocket Lab Corporation (NASDAQ:RKLB) is an end-to-end ****** e company that provides launch services and ****** e systems solutions. On September 09, 2026, Rocket Lab Corporation (NASDAQ:RKLB) closed at $63.07 per share. Over the past month, Rocket Lab Corporation (NASDAQ:RKLB) declined 21.26%, but its shares are up 30.23% over the past year. Rocket Lab Corporation (NASDAQ:RKLB) has a market capitalization of $40.33 billion, and its stock has traded within a 52-week range of $37.57 to $151.00.
American Century Investments Focused Dynamic Growth Fund stated the following regarding Rocket Lab Corporation (NASDAQ:RKLB) in its Q2 2026 investor letter:
"Rocket Lab Corporation (NASDAQ:RKLB). The commercial ****** e company rallied as record revenue and strong guidance were supported by a large backlog and demand for its launch and ****** e systems businesses. After ****** e Exploration Technologies' June initial public offering drove some volatility, Rocket Lab announced plans to acquire satellite operator Iridium Communications."
Rocket Lab Corporation (NASDAQ:RKLB) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. According to our database, 52 hedge fund portfolios held Rocket Lab Corporation (NASDAQ:RKLB) at the end of the second quarter, compared to 43 in the previous quarter. While we acknowledge the potential of Rocket Lab Corporation (NASDAQ:RKLB) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the